When it comes to financing an investment property, there are a lot of different options available to you. It can be confusing trying to decide which loan is the best for your needs. In this blog post, we will discuss the pro’s and con’s of three common types of loans: conventional, FHA, and VA. We will also help you determine which loan is the best for you based on your individual situation.
Conventional Loans: A conventional loan is a mortgage that is not backed by the government. This type of loan typically has a lower interest rate than other types of loans, and it is available to borrowers with good credit scores. The downside to conventional loans is that they require a down payment of at least 20%.
FHA Loans: An FHA loan is a mortgage that is backed by the government. This type of loan typically has a lower interest rate than other types of loans, and it is available to borrowers with average or below-average credit scores. The downside to FHA loans is that they require a down payment of at least three percent.
VA Loans: A VA loan is a mortgage that is backed by the government and is available to veterans and active military members. This type of loan typically has a lower interest rate than other types of loans, and there is no down payment required. The downside to VA loans is that they can be difficult to qualify for.
So which loan should you choose? The answer depends on your individual situation. If you have a good credit score and are able to make a 20% down payment, then a conventional loan may be the best option for you. If you have an average or below-average credit score, then an FHA loan may be the best option for you. And if you are a veteran or active military member, then a VA loan may be the best option for you.
We hope this blog post has helped you better understand the different types of loans available for investment properties. If you have any questions, please don’t hesitate to contact us. We are happy to help!